[Federal Register Volume 62, Number 133 (Friday, July 11, 1997)]
[Notices]
[Pages 37192-37194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18287]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-570-822]


Certain Helical Spring Lock Washers From the People's Republic of 
China; Preliminary Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of preliminary results of antidumping duty 
administrative review.

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SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on certain helical 
spring lock washers (HSLWs) from the People's Republic of China (PRC) 
in response to requests submitted by the petitioner, Shakeproof 
Industrial Products Division of Illinois Tool Works (SIP), and by the 
respondent, Zhejiang Wanxin Group Co., Ltd., (ZWG). This review covers 
shipments of the subject merchandise to the United States during the 
period October 1, 1995 through September 30, 1996.
    We have preliminarily determined that sales have been made below 
normal value (NV). If these preliminary results are adopted in our 
final results, we will instruct the U.S. Customs Service to assess 
antidumping duties equal to the difference between the export price and 
NV.
    Interested parties are invited to comment on these preliminary 
results. Parties who submit argument are requested to submit with each 
argument (1) a statement of the issue and (2) a brief summary of the 
argument.

EFFECTIVE DATE: July 11, 1997.

FOR FURTHER INFORMATION CONTACT: Tamara Underwood, Donald Little, or 
Maureen Flannery, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-
4733.

Applicable Statute

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
dated of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Round Agreements Act (URAA). In addition, unless otherwise 
indicated, all citations to the Department's regulations are to the 
regulations as amended by the interim regulations published in the 
Federal Register on May 11, 1995 (60 FR 25130).

Background

    On October 19, 1993, the Department published the antidumping duty 
order on HSLWs from the PRC in the Federal Register (58 FR 53914). On 
October 1, 1996, the Department published a notice in the Federal 
Register (61 FR 51259) notifying interested parties of the opportunity 
to request an administrative review of the antidumping duty order on 
HSLWs from the PRC. On October 30 and 31, 1996, in accordance with 19 
CFR 353.22 (a), the petitioner and ZWG, respectively, requested that 
the Department conduct an administrative review of ZWG, also known as 
Hangzhou Spring Washer Plant. The notice of initiation of this 
administrative review was published on November 15, 1996 in the Federal 
Register (61 FR 58513). The Department is conducting this 
administrative review in accordance with Section 751 of the Act.

Scope of Review

    The products covered by this review are HSLWs of carbon steel, of 
carbon alloy steel, or of stainless steel, heat-treated or non-heat-
treated, plated or non-plated, with ends that are off-line. HSLWs are 
designed to: (1) Function as a spring to compensate for developed 
looseness between the component parts of a fastened assembly; (2) 
distribute the load over a larger area for screws or bolts; and (3) 
provide a hardened bearing surface.
    The scope does not include internal or external tooth washers, nor 
does it include spring lock washers made of other metals, such as 
copper.
    HSLWs subject to this review are currently classifiable under 
subheading 7318.21.0030 of the Harmonized Tariff Schedule of the United 
States (HTS). Although the HTS subheading is provided for convenience 
and Customs purposes, the written description of the scope of this 
proceeding is dispositive.
    This review covers the period October 1, 1995 through September 30, 
1996.

Separate Rates Determination

    To establish whether a company operating in a state-controlled 
economy is sufficiently independent to be entitled to a separate rate, 
the Department analyzes each exporting entity under the test 
established in the Final Determination of Sales at Less Than Fair 
Value: Sparklers from the People's Republic of China (56 FR 20588, May 
6, 1991) (Sparklers), as amplified by the Final Determination of Sales 
at Less Than Fair Value: Silicon Carbide from the People's Republic of 
China (59 FR 22585, May 2, 1994) (Silicon Carbide). Under this policy,

[[Page 37193]]

exporters in the non-market economies (NMEs) are entitled to separate, 
company-specific margins when they can demonstrate an absence of 
government control, both in law and in fact, with respect to export 
activities. Evidence supporting, though not requiring, a finding of de 
jure absence of government control over export activities includes: (1) 
An absence of restrictive stipulations associated with an individual 
exporter's business and export licenses; (2) any legislative enactments 
decentralizing control of companies; and (3) any other formal measures 
by the government decentralizing control of companies. De facto absence 
of government control over exports is based on four factors: (1) 
Whether each exporter sets its own export prices independently of the 
government and without the approval of a government authority; (2) 
whether each exporter retains the proceeds from its sales and makes 
independent decisions regarding the disposition of profits or financing 
of losses; (3) whether each exporter has the authority to negotiate and 
sign contracts and other agreements; and (4) whether each exporter has 
autonomy from the government regarding the selection of management.
    In the first and second administrative reviews covering the periods 
October 15, 1993 through September 30, 1994 and October 1, 1994 through 
September 30, 1995, respectively, we determined that ZWG merited a 
separate rate. We have found that the evidence on the record of this 
review also demonstrates an absence of government control, both in law 
and in fact, with respect to ZWG's exports according to the criteria 
identified in Sparklers, and an absence of government control with 
respect to the additional criteria identified in Silicon Carbide. 
Because we determined that ZWG merited a separate rate under the 
criteria set forth in Sparklers and Silicon Carbide, and because no 
evidence was put on the record of this review demonstrating that ZWG 
does not merit a separate rate for this review, we continue to assign 
ZWG a separate rate.

Export Price

    For sales made by ZWG we used export price, in accordance with 
section 772(a) of the Act, because the subject merchandise was sold to 
unrelated purchasers in the United States prior to importation into the 
United States.
    We calculated export price based on the price to unrelated 
purchasers. We deducted an amount, when appropriate, for foreign inland 
freight, brokerage and handling, ocean freight, and marine insurance. 
We valued foreign inland freight, brokerage and handling, ocean 
freight, and marine insurance using surrogate data based on Indian 
costs. We selected India as the surrogate country for the reasons 
explained in the ``Normal Value'' section of this notice.

Normal Value

    For companies located in NME countries, section 773(c) (1) of the 
Act provides that the Department shall determine NV using a factors-of-
production methodology if (1) the merchandise is exported from an NME 
country, and (2) the information does not permit the calculation of NV 
using home-market prices, third-country prices, or constructed value 
under section 773(a) of the Act.
    We calculated NV based on factors of production in accordance with 
section 773(c)(4) of the Act and section 353.52(c) of our regulations. 
We determined that India is comparable to the PRC in terms of (1) per 
capita gross national product (GNP), (2) the growth rate in per capita 
GNP, and (3) the national distribution of labor. In addition, India is 
a significant producer of comparable merchandise. Therefore, for this 
review, we chose India as a comparable surrogate on the basis of the 
above criteria, and have used publicly available information relating 
to India to value the various factors of production. (See memorandum to 
Maureen Flannery from David Mueller, dated January 29, 1997, ``Certain 
Helical Spring Lock Washers from the PRC: Nonmarket Economy Status and 
Surrogate Country Selection,'' and memorandum to the file from Tamara 
Underwood, dated July 3, 1997, ``India Selected as Surrogate Country 
for Factors Valuation in the Third Administrative Review of the 
Antidumping Order on Certain Helical Spring Lock Washers from the 
People's Republic of China,'' which are in the file in the Central 
Records Unit (room B099 of the Main Commerce building).)
    We valued the factors of production as follows:
     For carbon steel wire rod values, we used the average cost 
per metric ton of carbon steel wire rods imported from the United 
Kingdom by ZWG during the period of review. We made further adjustments 
to account for the freight costs incurred between the port and ZWG.
     For the value of chemicals used in the production and 
plating process of HSLWs, we used per kilogram values obtained from the 
Indian publication Chemical Weekly and from the Monthly Statistics of 
the Foreign Trade of India-Imports (MFTI). We adjusted to account for 
freight costs incurred between the supplier and ZWG.
     For labor values, we used data from the Yearbook of Labor 
Statistics (YLS) published by the United Nations. Data from the YLS is 
not differentiated by skill level, or by whether the labor is direct or 
indirect. Thus, following the method established in Preliminary 
Determination of Sales at Less Than Fair Value: Polyvinyl Alcohol from 
the People's Republic of China, (60 FR 52647, October 10, 1995), we 
applied a single labor value to all reported labor factors, including 
indirect labor. We adjusted these rates to reflect the average 
inflation throughout the POR using the consumer price indices (CPI) 
published by the IMF.
     For factory overhead, selling, general, and administrative 
expenses, and profit values, we used information from the April 1995 
Reserve Bank of India Bulletin for the Indian industry group 
``Processing and Manufacturing: Metals, Chemicals, and Products 
Thereof.'' From this information, we were able to determine factory 
overhead as a percentage of the total cost of manufacturing, SG&A as a 
percentage of the total cost of manufacturing, and the profit rate as a 
percentage of the cost of manufacturing plus SG&A.
     For packing materials values, we used the per kilogram 
values obtained from the MFTI. Where necessary, we adjusted these 
values to reflect inflation through the POR using WPI published by the 
IMF. We made further adjustments to account for freight costs incurred 
between the PRC supplier and ZWG.
     To value coal, we used a per kilogram value obtained from 
the MFTI. We adjusted this value to reflect inflation through the POR 
using WPI published by the IMF. We made further adjustments to account 
for freight costs incurred between the supplier and ZWG.
     To value electricity, we used the price of electricity for 
1995 reported in the Confederation of Indian Industries Handbook of 
Statistics. We adjusted the value to reflect inflation through the POR 
using WPI published by the IMF.
     To value water, we used the November 1993 Water Utilities 
Data Book for the Asian and Pacific Region published by the Asian 
Development Bank. We adjusted the value to reflect inflation through 
the POR using WPI published by the IMF.
     To value truck freight rates, we used a rate derived from 
April 20, 1994 issue of The Times of India. We adjusted the rate to 
reflect inflation through the POR using WPI published by the IMF.

[[Page 37194]]

     To value shipping freight, we used a rate reported to the 
Department in the August 1993 cable from the U.S. Embassy in India 
which was submitted for and used in the Final Determination of Sales at 
Less Than Fair Value: Certain Helical Spring Lock Washers from the 
People's Republic of China (58 FR 48833, September 20, 1993). We 
adjusted the rate to reflect inflation through the POR using WPI 
published by the IMF.

Currency Conversion

    We made currency conversions pursuant to section 353.60 of the 
Department's regulations at the rates certified by the Federal Reserve 
Bank.

Preliminary Results of Review

    We preliminarily determine that the following dumping margin 
exists:

------------------------------------------------------------------------
                                                                 Margin 
          Manufacturer/exporter               Time period      (percent)
------------------------------------------------------------------------
Zhejiang Wanxin Group Co., Ltd..........    10/01/95-09/30/96      13.64
------------------------------------------------------------------------

    Parties to the proceeding may request disclosure within 5 days of 
the date of publication of this notice in accordance with 19 CFR 
353.28. Any interested party may request a hearing within 10 days of 
publication in accordance with 19 CFR 353.38 (b). Any hearing, if 
requested, will be held 44 days after the publication of this notice, 
or the first workday thereafter. Interested parties may submit case 
briefs within 30 days of the date of publication of this notice in 
accordance with 19 CFR 353.38 (c). Rebuttal briefs, which must be 
limited to issues raised in the case briefs, may be filed not later 
than 37 days after the date of publication. The Department will publish 
a notice of the final results of this administrative review, which will 
include the results of its analysis of issues raised in any such 
comments.
    The Department shall determine, and the U.S. Customs Service shall 
assess, antidumping duties on all appropriate entries.
    Individual differences between export price and NV may vary from 
the percentage stated above for ZWG. The Department will issue 
appraisement instructions directly to the U.S. Customs Service.
    Furthermore, the following deposit rates will be effective upon 
publication of the final results of this administrative review for all 
shipments of HSLWs from the PRC entered, or withdrawn from warehouse 
for consumption on or after the publication date, as provided for by 
section 751 (a) (2) (C) of the Act: (1) For ZWG, which has a separate 
rate, the cash deposit rate will be the company-specific rate 
established in the final results of this administrative review; (2) for 
all other PRC exporters, the cash deposit rate will be the PRC rate, 
which is 128.63; and (3) for non-PRC exporters of subject merchandise 
from the PRC, the cash deposit rate will be the rate applicable to the 
PRC supplier of that exporter.
    These deposit rates, when imposed, shall remain in effect until 
publication of the final results of the next administrative review.
    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 353.26 to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This administrative review and notice are in accordance with 
section 751 (a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 353.22.

    Dated: July 3, 1997.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 97-18287 Filed 7-10-97; 8:45 am]
BILLING CODE 3510-DS-P